Founded in 1958, Stockyard is an integrated pastoral, lot feeding and branded beef business, exporting a suite of premium grain-fed Wagyu and Angus beef products to more than 20 international markets.
Already recognised for their existing environmental, social and governance (ESG) practices, the Stockyard Group chose to stretch towards more sustainable outcomes in emissions reduction, and animal and people wellbeing by entering into a sustainability-linked loan (SLL) – a first for agriculture.
Managing Director of Stockyard, Lachie Hart said CBA’s new loan structure incorporates their strong commitment to continuously strive for even better care of their animals, the environment, the community, and their people.
“We have welcomed the opportunity to participate in this innovative financing structure and make a commitment to tie important sustainability targets to our financing costs. To us, as a third-generation family business, it is our responsibility to pass on a viable, responsible, and sustainable business for future generations and this loan will allow us to utilise interest savings to ensure this is the case.
“It also provides opportunities to access internationally recognisable ESG credentials to assist with securing capital and customers in the future,” Mr Hart said.
CommBank’s Group Executive for Business Banking, Mike Vacy-Lyle, said this landmark transaction will be a game changer for the business. It demonstrates the bank’s ability to develop innovative finance solutions to support the sustainability of the industry through improved ESG outcomes.
“We know many farmers across the country are already adopting best practice sustainability and environmental stewardship, and we want to partner with agribusinesses to help them innovate and accelerate transition plans,” Mr Vacy-Lyle said.
Talk to a CommBank Regional and Agribusiness Specialist about our lending solutions today.